The amount of interest that can accrue on student loans is often overlooked. Graduating from college and then realizing that you owe $5,000 more than when you started can be bothersome, and the interest doesnít stop there. One way to avoid getting hit with that number all at once after graduation is to start making payments on the interest while you are still in school.
Very few people actually do this. Most people figure they donít need to start making payments until they finish school. But if you start student loan repayment early you can get out in front of the interest before it starts to snowball. The longer you wait to make payments the longer it takes to pay off the loan. That means more time for interest to build up, saddling you with more debt.
So if you work part or full-time while taking classes, use some of that money toward payments on the interest. By graduation time you will be glad you did.
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|Jennifer Mathes, Ph.D.|